South Korea's economy shrank 0.2% in the second quarter, revised central bank data showed on Thursday, unchanged from its advance estimate issued in July. It was the sharpest quarterly contraction since the fourth quarter of 2022 when the economy shrank by 0.

The Bank of Korea left second-quarter data mostly unrevised, confirming that the economy shrank and giving policymakers added incentive to shift their focus to supporting growth momentum after inflation slowed in line with projections.

Korea’s economy shrank 0.2 percent in the second quarter, while the gross national income (GNI) retreated by 1.4 percent amid sluggish domestic demand.

South Korea says it has detected suspected trash-carrying balloons launched by North Korea, in the latest round of a Cold War-style psychological warfare between the war-divided rivals.

Pyongyang has indicated it is retaliating after South Korea activists sent pro-democracy leaflets into North Korean territory